BANK OF THAILAND: TAKES SOFT PEDAL ON CRYPTO RESTRICTIONS.

 

 

The National Bank of Thailand, prior to this time maintained stiff regulations on cryptocurrency dealings, with prohibition of Thai banks from providing crypto-related services from investing, trading and contributing to establishment of crypto exchanges for customers and the public. Furthermore, the Thai central bank also prohibited its banks from offering advice to members of the public as regards crypto investments or trading, and a firm ban on crypto purchases using bank credit cards.

However in a new development, Thailand’s apex bank has given permission to its local banks to launch subsidiary branches solely for cryptocurrency activities. This new order allows these local bank branches leverage on issuance of digital tokens, offering crypto brokerage and business services in addition to investment services via medium of these subsidiaries. In its released notice, all crypto subsidiaries are only allowed dealings in line with the Thailand security and exchange commission guidelines and hence do not entirely maintain autonomy on crypto dealings.

This new order comes as an aftermath of an early legislation draft by the Thailand government and financial authorities which clearly affirmed  the supremacy of the Thailand SEC(Security and Exchange Commission) as the regulatory body for all Thai-crypto relations , and who have also in recent months passed bills and law regulations guiding various crypto activities and niches; including regulations on Initial Coin Offerings (ICO’s),clearly stated guidelines and prerequisites on application for exchange licensing and adoption of seven specific crypto coins to be traded as trading pairs; which include Bitcoin(BTC), Ethereum(ETH), Bitcoin Cash(BCH), Litecoin(LTC), Ripple(XRP), Ethereum classic(ETC) and Stellar lumens(XLM), with these coins chosen as they do not expressly promote privacy and have better liquidity and consensus credibility.

As further market situations unfold and cryptocurrency popularity booms amidst clamour for mass adoption and validation. It is safe to predict that more leverage and free roles would be made permissible to most crypto-related institutions by government and financial authorities.

 

Written By

CryptoEnthusiast,CryptoEducator and Angel Investor,Writing Pro and Techie